Oil prices rose nearly 1% on Tuesday, as traders awaited the outcome of the OPEC+ meeting later this week.

Brent crude was up 66 cents, or 0.92%, at $72.49 a barrel by 0909 GMT, while U.S. West Texas Intermediate crude was up 63 cents, or 0.93%, at $68.73.

OPEC+ is likely to extend its latest round of production cuts until the end of the first quarter at its meeting on Dec. 5, sources have said.

"Given the improved compliance with production cuts from Russia, Kazakhstan and Iraq, the decline in Brent prices and indications in press reports, we assume OPEC+ production cuts will be extended into April," Goldman Sachs analysts said in a note.

OPEC+, which accounts for about half of the world's oil output, has been pushing to gradually phase out output cuts by 2025.

However, the prospect of an oil market surplus has put downward pressure on prices, with Brent trading nearly 6% below its December 2023 average.

"I don't think there's any option but to delay it," said Priyanka Sachdeva, senior market analyst at Phillip Nova, adding that mounting pressure from participating countries to raise output could limit any extension to a few months.

The outlook for global oil demand remains weak, with China's crude imports likely to peak as early as next year as demand for transportation fuels begins to decline, researchers and analysts say.

Saudi Arabia, the world's top exporter, is expected to cut its crude prices for Asian buyers to the lowest in at least four years, traders said.

Concerns that the U.S. Federal Reserve may not cut interest rates at its December meeting have also capped oil prices.

In the Middle East, cracks continued to appear in a U.S.-brokered ceasefire between Israel and the militant group Hezbollah, with nine people killed in attacks on two southern Lebanese towns shortly after Hezbollah fired missiles at Israeli military positions in the disputed Shebaa Farms region on Monday.

Source: Investing.com